MARA's outsized management stock compensation and high leverage motivated us to look elsewhere for investment opportunities such as RIOT.RIOT's management stock compensation plan is 24% and between 7% and 55% of revenue and total expenses since 2021Q1 while MARA's is 85% and between 26% and 95%.RIOT's debt is negligible where its debt is only 10% and 64% of total assets and liquid assets while MARA's is 50% and 222% of total assets and liquid assets.RIOT's total mining cost per BTC ($30,800) is similar to MARA's ($31,700) which provides RIOT with 3+10 quarters of runway compared to MARA's 6 under a worst-case scenario.Although RIOT is found to be more desirable and is 20% undervalued relative to MARA, we discourage investing in Bitcoin mining companies temporarily due to higher beta and additional risks.
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